Eris Lifesciences Q4 FY25 Concall: Key Highlights

Strong Financial Performance:

• Revenue: ₹2,894 crore
• EBITDA: ₹1,117 crore (+51% YoY)
• PAT: ₹375 crore
• ROCE: 15% (adjusted: 20%)
• FY26 EPS growth guidance: 50%

Diabetes & Insulin Leadership Strategy:

• Expanding insulin portfolio post Biocon-2 acquisition.
• Insulin revenue grew 22%, despite ₹50 crore supply-led loss.
• Aiming to capture ₹200–300 crore of the vacated Human Insulin cartridge market from H2 FY26.
• Cartridge production at Bhopal expected by year-end.

GLP-1 and Obesity Portfolio Buildout:

• Launched India’s first generic Liraglutide (Saxenda) for obesity.
• Broader GLP-1 pipeline includes Semaglutide (FY27) and combo products through FY28.
• These initiatives will help maintain leadership in the evolving market.

Domestic Branded Formulations (DBF):

• Core DBF grew 32% YoY in FY25. Organic growth: ~9%.
• Base business EBITDA margins: ~40%. Biocon business margins rose from 19% to 24% post-acquisition.
• FY26 revenue guidance: ₹2,900–3,050 crore (15–21% organic growth).

Critical Care Repositioning:

• Deliberate cut in low-margin Critical Care business (down 20%) in FY25.
• GTM reset for FY26 with a new brand-building focus.
• Swiss Parenterals will support manufacturing efficiency.

Swiss Parenterals & Exports:

• Swiss posted ₹326 crore revenue with 40% EBITDA growth.
• Export growth expected post Anvisa inspection approvals.
• CDMO model and specialty injectables for EU to scale from FY27.

Manufacturing Efficiency & In-sourcing:

• In-house production ratio improved from <50% to 66%.
• Targeting 80% in-house production by Q4 FY26.
• This is a major margin lever with higher contribution from insulin and GLP-1 products.

Capital Allocation & Debt Strategy:

• Capex in FY25: ₹263 crore. FY26 capex: ₹200 crore.
• Net debt at ₹2,200 crore; aiming to reduce to ₹1,800 crore (1.5x Debt/EBITDA).

Management Tone:

• Confident outlook backed by pipeline strength, improved supply chain, margin levers, and execution focus.
• Transparent about challenges in insulin supply and critical care GTM.

FY26 Guidance (Consolidated):

• Revenue: ₹3,325–3,500 crore
• EBITDA margin: ~36%
• EPS growth: 50%
• ROCE: 22% (adjusted)
• Capex: ₹200 crore
• Net Debt/EBITDA: 1.5x